Is It a Good Time to Buy a Home in Austin?
Is it a good time to buy a house in Austin right now?
To answer this question, consider market trends, seasonal considerations, economic factors, and personal goals.
Market Trends
Home prices
according to the latest year-over-year market data from the Austin Board of Realtors for Austin, Round Rock, and San Marcos, the median home value in Austin has declined 3.2% to $430,000.
Inventory Levels
Furthermore, inventory has increased to 5.1 months. News listings are up 7.4%, and pending sales have increased by 13%
Market Dynamics
Even so, it is a buyer’s market, as the average close to list price was 92.7% versus 93.3%. November 2024 was below the asking price, which tells us sellers are willing to negotiate.
Seasonal considerations
Home Prices and Inventory
Home prices are typically lower in December. Additionally, inventory typically is lower as sellers are less inclined to put the house on the market with the demands of the holiday season.
Economic Factors
Mortgage Interest Rates
Interest rates, which significantly impact home purchases, have hovered around the low-to-mid 6% range. We anticipate that they will continue to stay in this range for 2025. Most of us have accepted that the 3% days were an anomaly and recognize that this range of interest rates is still competitive as they are still near average historical lows.
The Rental Market
The rental market in Austin has become much more palatable for renters, which reduces their motivation for home ownership, which may feel more expensive than renting to potential homebuyers. This will decrease demand, which will help other buyers as more sellers dip back into the market. Lower demand equals increased willingness to drop prices.
Expert Insight
The Market Outlook
The market outlook for Austin indicates a more balanced market. Our home inventory increases as sellers are more comfortable moving on with a mid-6% interest rate.
Buyer’s Market
We will see more of a buyer’s market because homes sit on the market longer, with lower demand. This will motivate sellers to be more willing to negotiate.
Conclusion
Ultimately, the most crucial factor is you as the buyer and whether you are in a position to buy. How do you know? Some aspects to consider are job stability, willingness to stay in the area for several years, a disciplined credit score, and a savings track record. There are many financial benefits to homeownership. Moreover, homeownership is a lifestyle choice. Contact Joel today for a free, no-obligation consultation to evaluate your home purchase readiness, make a plan for your journey, and elevate your real estate success.
